Title
Auditor-Controller recommending the Board adopt and authorize the Chair to sign Resolution 160-2025, “Resolution of Consideration to Amend the Special Tax Formula, Authorize the Financing of Services and Increase the Indebtedness Limit for Community Facilities District No. 2023-1 (East Ridge)”, setting a public hearing for December 2, 2025, at 10:00 AM.
FUNDING: N/A
Body
DISCUSSION / BACKGROUND
The Board of Supervisors will recall that on July 25, 2023, with Legistar file 23-1054, the Board adopted Resolution 117-2023 (the “Resolution of Formation”), forming the “County of El Dorado Community Facilities District No. 2023-1 (East Ridge)” (the “CFD”) and designating an improvement area (“Improvement Area No. 1”) and future annexation area (“Future Annexation Area”) within the CFD pursuant to the Mello-Roos Community Facilities Act of 1982. The purpose of the CFD is to fund the construction of certain major infrastructure improvements, and to pay certain impact fees associated with the East Ridge development project.
At the same meeting, the Board held a public hearing and conducted a special election in which the sole landowner voted in favor the levy of a special tax within Improvement Area No. 1 of the CFD and the bonded indebtedness limit for Improvement Area No. 1. The CFD is authorized to issue total indebtedness in an amount not to exceed $150,000,000, initially allocated $105,000,000 to land in Improvement Area No. 1 of the CFD and $45,000,000 to land in the Future Annexation Area of the CFD.
The owners of all of the land within Improvement Area No. 1 and within the Future Annexation Area of the CFD have annexed certain the land within Future Annexation Area into Improvement Area No. 1 of the CFD and requested the County to undertake proceedings to (i) amend the Rate and Method of Apportionment (RMA) for Improvement Area No. 1 in order to revise the maximum special tax rates, (ii) amend the List of Facilities for the CFD to include a services component, pursuant to the Act, and (iii) increase the increase the indebtedness limit of the CFD to $250,000,000.
Today’s resolution seeks that the Board express its intent and consideration (i) of amendment of the RMA of Special Tax for Improvement Area No. 1 to revise the authorized maximum Special Tax rates, which amendment is set forth in Exhibit A attached to the Resolution; (ii) of amendment of the List of Authorized Facilities for Improvement Area No. 1 to include public services, as set forth in in Exhibit B attached to the Resolution; and (iii) to increase the indebtedness limit of the CFD to $250,000,000, with $200,000,000 allocated to Improvement Area No. 1 and the remainder allocated to the Future Annexation Area.
The addition of services authorized to be financed by the CFD is primarily to facilitate an exit of the CFD property from the West Valley Village Zone of Benefit of County Service Area No. 9.
Approval of the Resolution is recommended. The action does not bind the Board to make the changes, rather, it calls for a public hearing at least 30 days after adoption, at which time the Board will be asked to consider formally adopting the changes, provided the changes are approved unanimously by the landowners in Improvement Area No. 1.
Members of the Board of Supervisors should note that special tax bonds issued for the CFD are expected to be issued in the future upon Board approval, and repayment is not an obligation of the County of El Dorado. The sole source of revenue to pay debt service on the Bonds comes from the special tax levied within the CFD.
ALTERNATIVES
The Board could vote not to approve the Resolution.
PRIOR BOARD ACTION
July 25, 2023 Legistar file 23-1054 - Board adopted Resolution No. 117-2023 (the “Resolution of Formation”), Resolution No. 118-2023 (the "Resolution for Special Election"), Resolution No. 119-2023 (the "Resolution Delcaring REsults of Special Election"), Resolution No 121-2023 (the "Resolution to Incur Bonded Indebtedness"); and approved Ordinance 5179 ("Levy of Special Taxes within Community Facilities District No. 2023-1 [East Ridge]")
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
No impact to the General Fund. Members of the Board of Supervisors should note that special tax bonds, if and when issued for the CFD, are expected to be issued in the future upon Board approval, and repayment is not an obligation of the County of El Dorado. The sole source of revenue to pay debt service on the Bonds comes from the special tax levied within the CFD.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Following Board approval:
1) Board Clerk’s Office will forward a fully executed Resolution to the Auditor-Controller.
2) Board Clerk’s Office will set a public hearing for December 2, 2025, at 10:00 AM.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Joe Harn